New Employees With an Annual Salary of 1 Trillion Won - Chapter 189

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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Chapter 189. Epidemic (4)

Korea University Hospital perfectly fulfilled its role as a hub hospital.

Dozens of suspected SARS patients were admitted, but only three were actually confirmed cases.

And even those three were all completely cured and walked out of the hospital on their own.

SARS was a dangerous infectious disease with a high fatality rate.

In other countries, hundreds at most and several at least died from it.

But in Korea, not a single death occurred.

As a result, Korea’s quarantine response was noted as a successful model not only domestically but also by overseas media.

As the situation stabilized like this, the market quickly returned to normal.

Aviation, travel, consumer, and retail stocks that had plummeted showed a rebound close to a surge, and we were able to record high returns once again.

“Branch Manager, we’ve completed closing all long positions. We invested a total of 19 billion dollars, applied 3x leverage, and achieved a total return of 75%. The profit is 14.2 billion dollars.”

“Thanks to the SARS situation calming down much faster than expected.”

“Yes. No additional confirmed cases are appearing in Korea either, and globally, the number of confirmed cases is steadily decreasing.”

A profit of 14.2 billion dollars.

Combined with the 9 billion dollars we earned earlier, we invested a total of 19 billion dollars in the market.

The profit from these two investments easily exceeded 23 billion dollars.

We had not only already achieved this year’s target.

But had exceeded that figure by several times.

Especially since the Korea Branch led this investment, we could take most of the profits.

Thanks to this, we had the leeway to spend bold amounts on building purchases and securing sites for new construction.

“How is the temporary headquarters purchase progressing?”

“There happened to be one property that perfectly matched our conditions. It’s the 20-story Samho Building located in Yeouido. The maintenance condition is also very good, so we can move in immediately with just simple remodeling. We’re proceeding with the purchase process.”

A 20-story building could be purchased without difficulty.

Especially in Yeouido’s case, there were many vacant buildings, so quick purchases were possible if the price was right.

“What’s the price?”

“Including taxes and all miscellaneous costs, approximately 200 billion won is needed.”

“That’s not a bad price.”

“Actually, if we had bought it last year, it would have been much cheaper. Recently, building prices in the Yeouido area have started rising again, so we had to pay a slightly higher price.”

The real estate bubble was slowly beginning to emerge in Korea as well.

Since it wasn’t yet overheated enough to be defined as a ‘bubble’, purchasing at this point was a sufficiently attractive investment.

“Real estate prices will rise further in the future. In just a few years, there’s a high possibility they’ll jump to more than double, not just 200 billion won.”

“If the current upward trend continues… there’s definitely that possibility.”

“That’s why we need to secure the new headquarters building site as soon as possible. The longer we wait, the more prices will rise.”

The Deputy Branch Manager was already moving busily to purchase the new headquarters site.

Several places had been shortlisted as candidates, and some had actually progressed to the negotiation stage.

“We’re looking for large-scale sites, but purchasing isn’t easy. Most are owned by other large corporations or government agencies.”

“Still, there should be places available for purchase. If it’s a company or agency with severe losses, they’d have sufficient reason to sell their sites.”

“Actually, there are rumors of sales from several sites owned by government agencies.”

Even agencies receiving government support.

Bearing massive deficits wasn’t an easy task.

Eventually, there were bound to be places trying to organize their sites to generate revenue or reduce deficits.

“Which agencies are they?”

“Korea Railroad Corporation and Korea Electric Power Corporation. Both have large deficits, and especially Korea Railroad Corporation is suffering from chronic losses.”

The purpose of companies was ultimately profit realization.

But if it was a company receiving government support, the story was different.

They couldn’t pursue only profits and had to consider public opinion as well.

This was especially true for agencies like Korea Railroad Corporation and Korea Electric Power Corporation.

The moment they raised rates even slightly to increase profitability.

Criticism from the entire nation would pour in, and the political sphere would immediately launch offensives.

“Which site seems more suitable for the new headquarters?”

“Both locations are excellent. However, the Korea Railroad Corporation site is right next to the headquarters building and adjacent to Yongsan Station, but… the site is a massive 170,000 pyeong.”

“How big is the KEPCO site?”

“Recently, the possibility of selling the KEPCO headquarters site has been discussed. If we can secure that site, we’d get 24,000 pyeong.”

170,000 pyeong and 24,000 pyeong.

Honestly, just to build one new headquarters, the latter 24,000 pyeong would be sufficient.

But if we could buy the 170,000 pyeong site.

It wasn’t simply a new headquarters, but a scale where we could create an entire new city for Tiger Fund.

“Looking at location alone, the KEPCO site is perfect prime land in the middle of Gangnam. On the other hand, the Yongsan site is… big enough for an entire new city to be built.”

“That’s why I personally would like to recommend the KEPCO site. However, the possibility of KEPCO selling their headquarters site immediately is low. Sales negotiations alone would take at least 5 years.”

“Then is purchasing the Korea Railroad Corporation Yongsan site possible?”

The Deputy Branch Manager took out prepared Korea Railroad Corporation materials and spread them on the desk.

Korea Railroad Corporation’s current financial situation and future organizational restructuring plans were densely organized.

“Korea Railroad Corporation is currently in the process of transitioning from a government agency to a public corporation. To transition to a public corporation, organizational restructuring costs are enormous, and above all, they need to resolve the chronic deficit problem.”

“So they need money, in other words.”

“That’s right. That’s why I judged the possibility of purchasing the Yongsan site to be higher.”

In the end, it meant the only land available for immediate purchase was the site owned by Korea Railroad Corporation.

Since we needed to start new headquarters construction as soon as possible, there was no time to hesitate.

“We need to proceed with negotiations with Korea Railroad Corporation immediately.”

“But to acquire the site, negotiations with the government rather than Korea Railroad Corporation seem necessary. No matter how much land Korea Railroad Corporation owns, they can’t sell it arbitrarily without government approval.”

“Who do we need to negotiate with?”

“Consultations with the Ministry of Economy and Finance, Ministry of Planning and Budget, and central government departments are necessary, and consultations with Seoul Metropolitan Government must also be completed for acquisition to be possible.”

After the change of administration, we hadn’t had direct communication with the Blue House.

Of course, we continued political support regardless of party, but we didn’t have as strong connections as with the previous administration.

“Is there a channel for communication with the Blue House?”

“Some people who worked in the previous administration are still maintaining their positions in the current administration. Through them, communication with the Blue House is definitely possible. But we need a department to serve as an intermediary bridge.”

We couldn’t just attack the Blue House recklessly.

No matter how urgent we were, we had to follow procedures.

“Then let’s meet with Korea Railroad Corporation first. Please arrange a meeting.”

“We’ve been having ongoing discussions with Korea Railroad Corporation regarding the Yongsan site. I’ll try to schedule an appointment with the Railroad Bureau Chief.”

Before meeting the Railroad Bureau Chief.

I entered internal strategy meetings with the fund employees.

To purchase the Yongsan site, unexpected variables would endlessly emerge, and we needed a perfect strategy to respond to any situation.

***

The meeting with the Railroad Bureau Chief was scheduled faster than expected.

This was thanks to the Deputy Branch Manager’s consistent communication with Korea Railroad Corporation.

We were able to meet the Railroad Bureau Chief and Railroad Facilities Director together at a high-end Korean restaurant with private rooms near Yongsan Station.

“Nice to meet you. I’m Lee Jung-hoo, Branch Manager of Tiger Fund.”

“I’ve heard so much about you. I was so surprised when Branch Manager Lee said he wanted to meet us directly.”

The Railroad Bureau Chief welcomed me warmly.

When Korea Railroad Corporation soon transitioned to a public corporation.

He was the person most likely to be appointed as the first Korea Railroad Corporation president.

“I understand you’ve had several discussions with our Deputy Branch Manager regarding the Yongsan site. To speed up the consultation process, don’t we need to talk openly among ourselves?”

“This is truly a welcome occasion. We want to organize the Yongsan site before transitioning to a public corporation, but… it’s not as easy as we thought.”

It was a meeting with a clear purpose.

Perhaps because of this, we immediately got to the main point without even touching the food.

“I heard there are no places wanting to purchase the Yongsan site.”

“There are no companies wanting to acquire the entire site. However, there are continuously places wanting to take only partial sections.”

“Tiger Fund Korea Branch wants to purchase the entire site.”

“The price won’t be low… would you be able to handle it?”

“We’re still calculating the exact value, but based on current market prices, I understand it’s about 1 trillion won. That amount is no problem for us.”

The Railroad Bureau Chief’s expression visibly brightened in an instant.

He had finally found the ‘investor who would purchase everything in bulk’ that he had only been thinking about.

“Are you planning to pay the amount in installments? Or are you thinking of utilizing loans from the Financial District? The procedures vary greatly depending on the payment method.”

“We will pay the full amount in cash as a lump sum. Payment is possible immediately once the contract is drafted.”

The Railroad Bureau Chief couldn’t hide his smile.

If he could receive 1 trillion won as a lump sum, he could solve the funding problems that had been holding back the Railroad Bureau in one stroke.

Moreover, the approval procedures from the Ministry of Economy and Finance and Seoul Metropolitan Government would become much easier, so the Branch Manager’s lips couldn’t help but keep curving upward.

“Very good. The Railroad Bureau naturally agrees, but the problem is the Ministry of Economy and Finance. And there’s also the possibility that Seoul Metropolitan Government won’t lift the regulations. Can you accept that risk?”

“To solve that issue, we’ve prepared a small solution. Would you like to hear it?”

“Of course we should hear it. If it’s a solution prepared by Tiger Fund… our expectations can’t help but be high.”

The Railroad Bureau Chief and Facilities Director simultaneously leaned forward.

I pushed the plates on the dining table to one side and spread out a map with the area around Yongsan Station enlarged.

“There’s a way to persuade the Ministry of Economy and Finance and Seoul Metropolitan Government all at once.”

“What method is that?”

“We need to move the Yongsan Station tracks underground. If the ground space opens up, the floor area ratio and height regulations will naturally be lifted, and since it’s a national infrastructure improvement project, the Ministry of Economy and Finance won’t be able to oppose it easily.”

“You mean all of Yongsan Station?”

The Facilities Director pointed to Yongsan Station with his hand as he spoke.

Since Yongsan Station’s scale couldn’t be covered well with one hand, he used his other hand as well to show me the scope of Yongsan Station.

“That’s right. Only by moving all of Yongsan Station underground can we become free from regulations.”

“That’s true, but the cost won’t be insignificant. While purchasing the Yongsan District is possible with 1 trillion won, moving Yongsan Station underground would cost at least 10 trillion won or more.”

It was a situation where the tail was bigger than the dog.

We’d have to invest 10 trillion won to buy 1 trillion won worth of land.

But I didn’t mind. I thought this was also a good investment.

“We can proceed with the investment using a BTO model. Tiger Fund will bear all costs, but if we receive operating rights to cover the costs, there won’t be any problem.”

“Even so, can Tiger Fund alone proceed with such a large-scale investment of over 10 trillion won?”

“If necessary, we’ll open a consortium to raise funds, but Tiger Fund alone can sufficiently bear costs of over 10 trillion won.”

A 10 trillion won scale was at the level of a national mega-project.

That’s why the Branch Manager and Director couldn’t believe that a single fund was trying to proceed with such a project.

“…Is it really possible?”

“The funds are already prepared. And we’re not investing 10 trillion won all at once, are we?”

“It’s not construction that will finish in one year, but over 2 trillion won in funds must be invested every year.”

“Not just 2 trillion won annually, but over 5 trillion won can be invested.”

I had already secured sufficient funds through the SARS crisis.

Not just 10 trillion won, but even 20 trillion won was fully usable at my discretion.

“This isn’t a matter we can decide on our own. We need to consult with related ministries… and the Blue House as well.”

“Hmm, I’m not sure if this is appropriate to say, but there’s only about a year left until the conversion to a public corporation. If the Branch Manager directly leads a project of this scale, wouldn’t the inaugural president position naturally follow?”

The public corporation president position hadn’t been confirmed yet.

While it was likely that the Branch Manager would become the inaugural president, variables still remained.

However, if a major construction project worth over 10 trillion won were to be promoted now.

Even for business continuity, the inaugural president position would inevitably have to be taken by the Branch Manager.

“I understand what you’re saying very well. I will strongly push this forward.”

“Please contact us anytime if needed. Whether it’s persuading related ministries or speaking up at the Blue House, everything is prepared.”

“With Branch Manager saying this, I feel truly reassured! I’ll create a report today and send it up to the Blue House!”

The Branch Manager had already made his decision.

And the Facilities Director, who was the Branch Manager’s line, was also looking down at the map with a determined expression.

Now the Railroad Bureau had completely become my ally.

All I had to do was persuade the related ministries and Blue House together with them.

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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